the slide gives small insight on consumer dissatisfaction parameters and impact on business.

1. CONSUMER
DISSATISFACTION
Jostin Sebastian
Adi Shankara Institute for Management and Technology
Final year management studies
9895818267/ jostin12@yahoo.com

2. • The basis for consumer satisfaction or dissatisfaction lies in mankind's ability to
learn from past experiences.
• A basic tenet of marketing is that consumer satisfaction with a product is likely
to lead to repeat purchases, acceptance of other products in the product line, and
favorable word-of-mouth

3. • When consumers have a negative evaluation of an outcome, they feel
dissatisfied.
• Dissatisfaction occurs when you do not enjoy a movie, do not like the
taste of food, were unhappy with the salesman etc.
• How well the product or service is offered.

4. ATTRIBUTION THEORY
• Theory explains how individuals find explanations or causes for effects or
behavior.
• How a person would be motivated or demotivated towards an event.
• Stability: is the cause of the event temporary or permanent.
• Focus: is the problem consumer or marketer related.
• Controllability: is the event under the customer’s or marketer’s control

5. • The theory basically explains how a consumer finds explanation to things happening in
his life relating to products.
• How their behavior is affected.
• If a consumer drives his new car and finds a crack on the windshield, he may analyze
the cause for the same.
• Might be the crack is due to a pebble hitting the glass or his own fault or the marketers
fault.

6. • So attribution theory gives an insight of how the consumer reacts and find an
explanation of the events happening in his daily life which relates to product experience.

7. STABILITY
• In banks not every customer can be satisfied, the organization knows this and gives
value added services like financial advice, bill payment facilities etc.
• Putting such efforts retains the trust of the customer and the satisfaction level is kept
intact as the customers feel that they are being cared.
• All major banks have realized this potential and are catering the needs of their
customers.

8. FOCUS
• This aspect of the theory sheds light on the blame game. Who is responsible? Who is
the focal point?
• If a problem occurs who is held responsible and why.
• Honda had faced a problem in their cars, Honda city. They had encountered some
problems with the engine and the company had recalled all the batch and repaired it free
of cost.

9. CONTROLLABILITY
• This aspect of the theory deals with the controllable factor of the problem.
• Is the problem occurred under the marketer’s control or the consumer’s.
• Pepsi had faced an allegation that a customer had found syringe inside the can.
• The allegation was baseless and was later found that the customer had tampered with
the can.
• Pepsi used this opportunity to publicize it’s policies about packaging and safety.
• They also had made arrangements to show the packaging process .
• This gave a positive effect to Pepsi.

10. EQUITY THEORY
• Another approach developed by psychologists that is useful in
understanding consumer satisfaction or dissatisfaction.
• It focuses on the nature of exchanges between individuals and their
perceptions of these exchanges.
• In marketing, it has been applied as the exchanges between a buyer and
a seller.

11. • Consumers form a particular form of perception of their own inputs and
outputs in a particular exchange.
• Example: when buying a stereo, a consumer’s inputs might include
information search, making the effort, money, psychological anxiety etc.
• The output would be a satisfactory sound system.
• Seller inputs might include a quality product, selling effort, a financing
plan; a fair profit margin.

12. • Customer satisfaction means money!
• Marriott found that each percentage point increased in the
customer-wide satisfaction measure of intent-to-return was
worth some $50 million in revenues
• A study in the Harvard Business Review showed that just a 5
percent increase in customer retention boosts profits by 25
percent to 125 percent.
• IBM in Rochester, Minn., calculates that a 1 percent increase
in customer satisfaction is worth $257 million in additional
revenues over five years.

13. • What if the customer is not satisfied !!
• Customers are three times more likely than service providers to recall the
quality of the personal element in a transaction.
70-85% of dissatisfaction is due to customer service not product; 68% of
customers who stop buying do so because they perceive an employee as
discourteous or indifferent

14. • dissatisfied customers on average tell 12 friends of the poor service; satisfied
people tell 5 friends.
• the average business loses 10-30% of its customers each year (without knowing
which, when or why lost)
• For every complaint there are an estimated 25 unnoted complaints

15. • People who complain are generally younger, have higher incomes, are better
educated, have more experience with the product, are less brand loyal, and may
have higher expectations.
• Quick resolution results in higher satisfaction & loyalty than multiple contacts

16. THE DISCONFIRMATION PARADIGM
• Now we can take an example of a movie to explain the disconfirmation
paradigm.
• A consumer opts for a Jim Carrey movie and enters the movie hall with much
expectations. His movies are always funny.
• If the person evaluates it as funnier than expected then a positive disconfirmation
would result.
• Vice versa.

18. MARKETER’S AIM
• Marketers have to make sure that the consumer has to experience a positive
experience.
• Customer retention is prime.
• After sales service and customer retention.
• Long term relationship
• Making negative word of mouth into positive. E.g: Coca Cola

19. • Monitoring customer satisfaction is very important.
• Surveys are conducted by all companies who realize the potential in it.
• The results of such surveys are published in business magazines and also be used
as a marketing communication tool.

20. COMPLAINTS
• Majority of dissatisfied consumers do not complain.
• Some may take extreme measures as to go for legal means.
• Solving complaints are very important
• Companies take it as an opportunity to grow.
• Identifying and addressing the genuine complaints are vital.

21. IS CUSTOMER SATISFACTION IMPORTANT?
• It should be an extremely important goal for any firm.
• Customers switch to competitor brands as a result of dissatisfaction and lack of trust.
• Customer retention.
• Care about customers.
• Showing the effort.
• Build trusting relationships

22. • Thank you.